Question

Suppose that a phone originally sold for $800 loses 3/5 of its value each year after it is released. After 2 years, how much is the phone worth?
A. $800
B. $1333
C. $128
D. $288​

Answer 1

After 2 years value of the phone is $128.  option C

Step-by-step explanation:

Given,

Original price of the phone = $ 800

Each year it loses $\frac{3}{5}$ of its value.

To find the value of phone after 2 years.

In 1st years

The value of the phone is= $800 - (800×$\frac{3}{5}$)

= $ 800-240 = $ 320

In 2nd year

The value of the phone is= $320 - (320×$\frac{3}{5}$)

= $ 320 - 192 = $ 128

Hence,

After 2 years value of the phone is $128.